Euro-Zone 'Core' Facing Budget Cuts

AMSTERDAM—The Netherlands is bracing for a new round of belt-tightening despite a growing public backlash against austerity, barely a year after similar bind caused the government to collapse.

The coalition parties are set to begin negotiations next week on how to cut the budget deficit by €6 billion, equal to $8 billion or 1% of the country's gross domestic product, next year to satisfy European Union budget rules.